Credit Card Usage

Discussion in 'Credit Talk' started by GVieve, Sep 9, 2003.

  1. GVieve

    GVieve Well-Known Member

    What's the best usage for credit cards. Should I use them EVERY month and then pay it off, or keep a small balance on it. Do I need to use it every month, or does that really matter once my balance is low.

    Thanks for any advise you can give.
  2. SoParkDiva

    SoParkDiva Well-Known Member

    It is not necessary to use the card every month. A CC should be a convenience for you to use when you need it. Just make sure that you make the payments on time.
  3. GVieve

    GVieve Well-Known Member

    Thanks, that's the answer I was hoping for. I hated the thought of HAVING to use it every month.
  4. willgator

    willgator Well-Known Member

    if you want to keep the card open, once every 6 months, if you want cl increases use it alot more , always pay on time as much as you can leave a little balance cc company is happier good luck
  5. BrettS

    BrettS Well-Known Member

    They say that having a small balance on some of your credit cards will help your score. This doesn't mean that you need to use them every month, however. Just make a larger purchase with the card one month and pay the minimum payments on it for a while. Before you pay it down completely just use it for another purchase.

    That said, however, there is some debate on exactly how much of an improvement to your score this will be. There is probably only going to be a few point difference between having no balance and a small balance. So like SoParkDiva said, credit cards are meant to be a convience to you, so unless you're trying to get a new loan or have some reason to try to maximize your credit score then I wouldn't worry about it. If you know you're going to be applying for a loan in the near future, then you might want to put a small balance on a few cards for the score boost. (It usually takes a month or so for the balance to show up, so you'll have to do it in advance of applying for the loan.)

    Also, having one (or even worse - several) cards maxed out can really hurt your score. Again, if you need to max out a card for a large purchase or an emergency don't worry about it - that's what credit cards are for, but again, if you're going to be applying for a loan then you'll want to try to pay those down a month or so before you apply.

  6. SoParkDiva

    SoParkDiva Well-Known Member

    Also if you have a card with a $500 cl it isn't wise to keep balances of $300+ on it every month because that looks like you are nearing your cl and maxing out your card.

    I see posters happy that they were approved for $500 cl. That is not always a good thing unless you plan to pay your balance off every month.

    It is better to have a higher cl so you have more room to carry balances if carrying balances is something you have to do.

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